What does Xero automatically do when deleting fixed assets?

When deleting fixed assets in Xero, the system automatically creates the necessary journals to ensure that the accounting records reflect the changes. This is important because fixed assets represent significant portions of a business's financial statement, and their removal must be accounted for correctly. The automatic generation of journals ensures that the relevant adjustments are made to depreciation and asset values without manual intervention from the user, maintaining the integrity of the accounts and preventing errors.

Other considerations for fixed asset management do not apply in this context. For instance, Xero does not require administrator approval to delete fixed assets; therefore, there is no approval prompt. Deleted assets are not archived, which means they are entirely removed from the system rather than stored away for future reference. Additionally, the platform does not automatically notify all users about deletions, as this could lead to confusion in the absence of a relevant management procedure. Overall, the automatic creation of journals aligns with Xero's goal of simplifying and streamlining accounting processes.